The Motley Foolยท2025-04-24 10:54Core Viewpoint - Dividend stocks trading at low valuations can provide significant long-term upside potential and higher-than-average yields, making them attractive investment opportunities Group 1: Target (TGT) - Target has experienced a significant decline, losing 46% of its value over the past year due to concerns about the economy and discretionary spending [3] - Despite the downturn, Target's business remains stable with a payout ratio of 50%, allowing for dividend safety even amid profit declines [4] - The stock is currently trading at a low P/E ratio of less than 11, compared to the S&P 500 average of 21, and offers a dividend yield of 4.8% [4][5] Group 2: ExxonMobil (XOM) - ExxonMobil's stock has declined by 12% over the past year, influenced by falling oil prices, but it remains an attractively priced dividend stock with a P/E ratio of less than 14 [6] - The company has a strong history of dividend payments, having increased its annual dividend for 42 consecutive years, with a current yield of 3.7% [7] - Earnings for ExxonMobil were down by over $2 billion in 2024, representing a decline of over 6%, indicating potential challenges ahead if oil prices do not recover [7] Group 3: Village Super Market (VLGEA) - Village Super Market offers a dividend yield of 2.9%, higher than the S&P 500 average of 1.5%, and trades at a low P/E multiple of just 9 [9] - The company operates 34 supermarkets on the East Coast, and its sales have risen by 4% to approximately $1.2 billion, with net income growing by 14% to $29.7 million over the past two quarters [10] - Despite being a smaller player in the grocery sector, Village Super Market's strong financials and low valuation make it a compelling dividend stock to consider [10]